Elon Musk's Actions Impact Tesla Sales in Australia

Elon Musk's recent controversial actions have started to take a toll on Tesla's sales, with reports indicating a significant slump worldwide, and notably a one-third decrease in sales in Australia during January compared to the same period last year.

According to data from the Federal Chamber of Automotive Industries (FCAI) and the Electric Vehicle Council (EVC), electric vehicle (EV) sales represented just 4.4 per cent of the Australian market in January, down from 5.5 per cent a year prior.

Giles Parkinson, founder of The Driven, suggested that Musk's "extraordinary" behaviour has contributed to Tesla's fall from being one of the top five best-selling car brands in Europe, a trend that is now mirrored in Australia.

"That really has been attributed a lot to the impact of Musk on his brand," he explained to The Business. "We're hearing that people are walking into other car makers and saying, I want to buy an electric car but I don't want to buy Tesla anymore."

Furthermore, the discomfort is not limited to prospective buyers. Existing Tesla owners have expressed a desire to sell their vehicles. Aaron, a Brisbane father who bought a Tesla in 2023, remarked, "His value system now is not in line with what I believe." In an effort to distance himself from Musk, he attached a sticker to his Tesla that reads 'I bought this before Elon went crazy'.

The data from the Australian Automotive Dealer Association (AADA) supports the notion that Musk's behaviour is influencing consumer decisions, revealing that 34 per cent of surveyed drivers are now "less willing to buy or lease a Tesla". However, 15 per cent stated they are more inclined to purchase due to Musk.

James Voortman, chief executive of the AADA, commented on Tesla's strong association with Musk, saying, "To be frank, we know that over the last 12 months or so, [Musk] has become a very political person." He noted that about a third of respondents would be deterred from buying a Tesla because of Musk.

Hybrids continue to outperform EVs in consumer interest, with 52 per cent of respondents more likely to consider a traditional hybrid compared to 39 per cent for EVs and 36 per cent for plug-in hybrids. Notably, the perception of EVs being better for the environment has decreased from 67 per cent to 58 per cent since early 2024.

Moreover, competition from lower-priced Chinese EV manufacturers is increasingly influencing the market. However, traditional hybrids remain a top choice in Australia.

As consumers navigate their preferences between different types of vehicles, many remain optimistic about the future of EVs, yet the impact of Musk's actions may pose a long-term challenge for Tesla in Australia and beyond.